Host
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Utilize the benefit of her legal experience. Ludmila Yamalova is here from Yamalova & Plewka. Yamalova & Plewka—that would be a good name for a company. Nice to see you.
Ludmila Yamalova
Good to be here.
Host
We have three fairly involved questions to start with. We’ll also try to get to two topics we wanted to bring up with you today: due diligence and the new mortgage law. Hopefully, we can dive into those in the next 10 minutes or so.
Here’s question one. We’ve talked about the case of shipments going back to wherever they were destined around the world. There was a collision in Pakistan, in Karachi Harbor. Twenty-one containers fell overboard. That has affected a lot of people’s goods. Richard is one of them.
Richard was moving back to the UK and wanted his goods to arrive there first from Dubai. The goods were picked up on January 21st, scheduled for shipping soon after. He and his family reached the UK on March 6th. On March 10th, he rang the moving company, which claimed he wanted them to store his items—he did not. He presented proof, and they relented, even offering compensation for goods purchased in the UK while he was waiting for his belongings. They also promised to ship the items as soon as possible.
The goods were then loaded onto a vessel that crashed in Karachi. It was a collision between two ships, and 21 containers fell into the sea. Richard now finds out his container was one of those affected. When the movers learned about the crash, they washed their hands of it and withdrew their offer of compensation. Richard emailed them about this but received no response. He had insured the value of his goods for only a quarter of what they were worth, a decision he now regrets. His issue is that the goods weren’t even meant to be on that ship; they should have been shipped much earlier. From a legal perspective, Ludmila, how do you see this unfolding?
Ludmila Yamalova
Potentially, Richard has two avenues to seek compensation: one against the moving company and the other against the insurance provider. Let’s address the insurance first because it’s simpler. The purpose of insurance is to provide immediate compensation without requiring court action or proving extensive damages. However, Richard insured his goods for less than their actual value. That was his choice, and he has to deal with those repercussions.
Still, he should file a claim with the insurance company. Receiving compensation for one-quarter of the value is better than nothing. At the same time, he should review the insurance contract because there may be provisions he isn’t aware of that could work in his favor. For instance, certain calamities might trigger higher compensation, although that’s rare, as most insurance contracts are drafted to favor the provider. Regardless, he should pursue this avenue promptly, as it seems he urgently needs funds. Unfortunately, he won’t be able to claim anything beyond the insured value.
Now, regarding the moving company, this is a breach of contract issue. They failed to provide the agreed service, which constitutes a breach. Under most laws, including in the UAE, breach of contract entitles you to compensation. In other jurisdictions, you may even claim punitive damages, but in the UAE, you can only claim for actual damages. Richard would need to prove the losses he incurred due to the breach.
Sometimes contracts include clauses that limit the company’s liability—for instance, to the amount paid for the service. These are common but not always enforceable. UAE courts have the authority to override such clauses and grant compensation for actual damages suffered. Richard might need to prepare for a court case unless the moving company agrees to settle amicably, which seems unlikely based on their lack of response.
If Richard decides to file a claim, he’ll need to present evidence of all costs incurred due to the breach, such as hotel bills or temporary accommodations if his family was left without furniture. However, proving less tangible damages—like sleeping on the floor—can be more challenging.
Host
By definition, wouldn’t the insurance only pay out a quarter of the value since that’s what was insured?
Ludmila Yamalova
Yes, that’s correct for the insurance claim. However, the moving company is a separate legal entity. Richard would be dealing with two different contracts: one with the insurance provider and another with the movers. Moving companies sometimes have provisions stating they’re not liable for goods and that it’s the customer’s responsibility to insure them. However, these clauses can be overridden, especially in cases of negligence.
Based on what Richard shared, it seems there’s enough evidence to show negligence by the movers—particularly their failure to ship the goods on time. This strengthens his claim for compensation. If the family is now in the UK, it may be harder to pursue a case in the UAE, but Richard should review his contract. The moving company might have a jurisdictional base in the UK, allowing him to file a claim there. UK laws may even allow for punitive damages, which aren’t available in the UAE.
Host
We’ve been talking about Richard’s case. Before moving on, let’s briefly discuss something we touched on earlier: credit card payments. If Richard paid for these services with a credit card, could that help?
Ludmila Yamalova
Absolutely. Many credit cards offer additional insurance or protection for purchases. Richard should check if his card has such benefits. Surprisingly, many people don’t know about these protections. Additionally, if Richard has home insurance on another property elsewhere, it might cover his belongings globally. This is something he should investigate.
Memberships, pension plans, or other investments might also include unexpected benefits. Exploring these options could provide some relief.
Host
Very often, these situations come down to reading the fine print, don’t they? But who really does?
Ludmila Yamalova
Surprisingly few people. It’s particularly common in this region for people to sign contracts without reading them. As lawyers, we’re often told we’re the only ones who raise questions about contract clauses. Most people sign with their eyes closed and deal with the consequences later.
Host
Sobering thought. Let’s move on to a question about overtime payment. Someone asks how overtime is calculated in the UAE.
Ludmila Yamalova
Generally, overtime is capped at two extra hours per day and compensated at 25%. If those hours fall between 9 p.m. and 4 a.m., the rate increases to 50%. For weekends, employees receive 50% extra plus an additional day off.
Host
Does this vary by industry?
Ludmila Yamalova
Not legally. The labor law applies universally across sectors, except for government and domestic workers.
Host
Here’s another question. Someone working in a free zone under their husband’s visa asks if they must give 30 days’ notice when resigning.
Ludmila Yamalova
Yes, the notice period depends on the employment contract, not the visa. Under UAE law, the default notice period is one month unless otherwise stated in the contract. Even if you’re not sponsored by the company, you’re bound by the terms of your contract.
Host
Last question: Is a will registered in Abu Dhabi valid in Dubai?
Ludmila Yamalova
It can be, but it depends on the type of will. For example, DIFC wills are valid across Dubai and Ras Al Khaimah. However, a notarized will from Abu Dhabi isn’t automatically enforceable in Dubai courts. It’s a good starting point but may require additional steps for recognition.
Host
Great insights, Ludmila. Thank you for joining us!
Ludmila Yamalova
Always a pleasure. Thank you.
Host
There’s just so much more to hear. Download our podcast at DubaiI1038.com.
